Japan urged to sell Indonesian plywood

JAKARTA (JP): Indonesia is currently negotiating intensively with 10 Japanese plywood manufacturers, who are going bankrupt due to a worldwide lack of raw materials, to get them to market Indonesia's plywood in Japan.

"We want to tap their existing channels in hopes to gain better access to Japan's plywood market," the executive director of the Indonesian Forestry Society, Asmaning Tjipto Wigjoprajitno, said during the opening ceremony of the 20th furniture exhibition at the Jakarta Fairgrounds in Kemayoran, Central Jakarta, yesterday.

The 10-day furniture fair, which is organized by the Indonesian Furniture Industry and Handicrafts Association (Asmindo), was officially opened by Minister of Social Services Endang Kusuma Inten Suweno.

Tjipto said that Asmindo is urging Japanese producers to totally terminate their manufacturing activities and to deal with the marketing of Indonesian plywood.

"If they agree with our requirements, they will be then allowed to be our distribution partners," he told Antara news agency.

He added that many plywood manufacturing companies in Japan are now being threatened by a lack of raw materials. "The situation has fortunately given a good opportunity to Indonesia's plywood exporters to enter the Japanese market," Tjipto said.

With the planned marketing cooperation with Japanese manufacturers, Tjipto expects that Indonesian plywood exports can increase to four million cubic meters next year from 3.2 million cubic meters last year.

Minister of Industry Tunky Ariwibowo reported on Thursday that two of Indonesia's prime exports, plywood and textiles, declined in volume the first eight months of this year.

According to the Central Bureau of Statistics, the country's plywood exports in the January-August period slightly dropped to $3.78 billion from $3.81 in the first period of last year.

Textile exports fell to $3.74 billion from $4.13 billion. (fhp)